Malta’s Cryptocurrency Regulations Come into Effect in November

Malta’s Cryptocurrency Regulations Take Effect

Following the approval by the country’s Parliament, the Maltase Government has announced that the Virtual Financial Assets Act (VFA) and the Innovative Technology Arrangement and Services Act (ITAS) will come into effect from November 1, 2018. This decision came after deliberations between Junior Minister Silvio Schembri and the Malta Financial Services Authority (MFSA) and Malta Digital Innovation Authority (MDIA).

EWN had earlier reported the approval of cryptocurrency and blockchain friendly bills brought before the Maltese Parliament. These Acts coming into effect in November are also part of the June regulatory proposals.

The Innovative Technology Arrangement and Services Act will regulate the registration of “innovative technology arrangements and innovative technology services” and the issuance of certificates to approved technology providers.

The Virtual Financial Assets Act will regulate the issuance of Initial Coin Offerings (ICOs) in the country. Among other requirements, this Act mandates that an issuer must first publish an easily comprehendible whitepaper, signed by all members of the issuer’s Board of Administration.

The commencement date of these Acts coincides perfectly with the launch date of the first edition of the Malta Blockchain Summit. The Malta Blockchain Summit will hold on the 1st and 2nd of November.

We’re delighted that the timing coincides so perfectly. We’ve always said that we’re here to support the conscious efforts being made at the national level to make Malta the primary jurisdiction for blockchain and DLT. We’re hoping that the Malta Blockchain Summit will serve as a showcase for the ecosystem, and will justify the efforts made by the Maltese government on the legislative front.

The summit is expecting 5,000 delegates in attendance and will host a Hackathon and an ICO pitch.

The Blockchain Island

Where countries like China and the United States have taken a stricter stance on Cryptocurrencies while embracing the technology that powers them – Blockchain, Malta has shown a progressive attitude towards the crypto and blockchain technology market.

Cryptocurrency exchanges globally have consistently expressed their willingness to work with governments to ensure a regulated ecosystem. To these Exchanges, government regulation gives them credibility that will ensure investor trust in the crypto market. Malta, by its progressive attitude towards cryptocurrency and Distributed Ledger Technology, has set itself up as the new hub for crypto companies and DLT providers.

Malta is also home to various exchanges, notably BitBay and Binance. The country is also in partnership with OKEx to launch a cryptocurrency exchange. In the DLT sphere, Malta signed an MoU with Binance to create the Blockchain Charity Foundation that will develop blockchain-powered solutions to local and regional issues in the country.